GoPro shares surge after it raises revenue forecast on strong demand for new cameras

David Becker | Getty Images News | Getty Images

GoPro’s Hero 6 camera is displayed at the GoPro booth during CES 2018 at the Las Vegas Convention Center on January 9, 2018 in Las Vegas, Nevada.

“Our decision to move most of our U.S.-bound production to Mexico supports our goal to insulate us against possible tariffs as well as recognize some cost savings and efficiencies,” Chief Financial Officer Brian McGee said on a post-earnings call with analysts.

The San Mateo, California-based company said its sales through retailers grew 11% in Asian markets, including Japan, China and Korea, and reported an 89% share of the U.S. action camera market by units.

The company incurred a net loss of $24 million, or 17 cents per share, in the first quarter ended March 31.

Excluding one-time items, the loss was 7 cents per share. Analysts had expected a loss of 9 cents, according to IBES data from Refinitiv.

The company has managed to keep losses in check and revive margins through job cuts and by exiting its drone business.

Quarterly revenue jumped 20% to $243 million, beating Wall Street analysts’ average estimate of $234.4 million.

GoPro also said it expects second-quarter revenue in the range of $285 million to $305 million. Analysts were expecting $292.8 million.

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